First quarter net sales at Conn’s were down double-digits, but the company reported a smaller net loss for the period ended April 30.
Net sales for the quarter were $279.3 million, a decrease of 12.3% from the comparable quarter the previous year. Net loss for the first quarter of fiscal year 2018 was $2.6 million, or $0.08 per share, compared to a net loss for the first quarter of fiscal year 2017 of $9.7 million, or $0.32 per share.
“We are encouraged by our fiscal 2018 first quarter financial performance, operating results and strong retail profitability, which is all underscored by ongoing progress with our credit business,” said Norm Miller, Conn’s chairman, president and CEO. “Conn’s credit segment performance is improving as a result of higher finance charges, strengthening portfolio trends, controlled expenses, and lower borrowing costs.”
Retail segment profitability improved, despite a 12.3% decline in total sales, the company said. Favorable mix within product categories and lower warehouse, delivery, and transportation costs increased retail gross margin in the quarter, the company said. Retail operating margins were 11.5%, compared to 10.6% for the same period last fiscal year.
During fiscal year 2018, the company has opened three new Conn’s HomePlus stores, two of which were opened in North Carolina, and one of which was opened in May of fiscal year 2018 in Virginia, bringing the total store count to 116. The company does not intend to open any additional stores in its fiscal year.
